ISEC 10


IMPROVING COMPETITIVENESS IN INTERNATIONAL CONSTRUCTION

SUAT GUNHAN


Abstract

Historically, U.S. contractors have a successful track record in international markets. They built that track record by bringing advanced technologies and applying efficient project management methodologies to projects. According to ENR data from the early 1980s to early 2008, U.S. contractors led the international construction arena. However, starting from 2009, Chinese construction firms lead the international construction with increasing revenue volume. The study analyzes the U.S. construction firms’ competitiveness in international markets between 1980 and 2017. The results of the analysis indicate that the U.S. contractors need to be competitive in creative financing. Creating joint ventures from companies that are active in Middle East, and Asia can improve the U.S. activities in those markets. To improve capabilities in delivering full-cycle services, U.S. construction companies can acquire facilities management companies. Involvement in emerging delivery methods and contracts such as build-operate-transfer, design-build-finance-maintain-operate, and public-private-partnerships can improve the competitiveness of U.S. contractors in international markets.

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